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Five takeaways from the Basel Committee’s new risk rules

New rules increase the amount of capital banks will have to hold to cover market risk but larger hikes are escaped

Five takeaways from the Basel Committee’s new risk rules

Banks will face tougher capital requirements under a long-awaited revision of rules from the Basel Committee released on January 14, 2016.

The revised market risk framework is seen as one of the major steps in post-crisis regulation. During the crisis, rules governing how much capital banks had to hold to cover against trades going sour were seen as weak and ineffective, contributing to the collapse of some institutions and the need to bail out others using public money.

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